Hello. I'm Akio Yoshida. I'll be briefing you on our views on and responses to significant changes in the business environment and providing an overview of first-half operating results. Hiroaki Egawa, Executive Officer in charge of Finance and Business Management, will then brief you on our first-half initiatives and the details of our operating results. The pandemic has been a headwind for some segments and a tailwind for others. The first-half saw a reversal in their respective fortunes. A seventh wave of COVID-19 cases saw its greatest peak in early July. Weather conditions, including record-breaking heat coinciding with a rapidly weakening yen, also caused continuous energy and raw materials cost increases, accelerating so-called cost-push inflation, where even stagnant economies see rising costs. It was a period in which factors combined and overlapped in a manner that AEON has never experienced before. We had assumed that COVID-19 cases would increase once again from September, but the increase actually began about two months earlier. Case numbers rose and plateaued from July and remained high. This was a headwind for the general merchandise store business, which had been seeing a recovery in customer numbers, as well as for segments for which the summer vacation and Bon holiday periods are the busiest, such as the services and specialty store business and shopping center development business companies like AEON Mall. I believe we'll be seeing a societal transition to a post-pandemic footing with the launch of Omicron-specific vaccinations and the government leading efforts to ride out the seventh wave without imposing restrictions on activities. Recently, with inflation intensifying, households are spending a larger percentage of their budgets than ever before on daily necessities such as food and commodities. We can see that customers are increasingly cautious about spending and becoming increasingly sensitive to prices day by day. There is also growing demand for value-added products and products designed to meet diversifying preferences, as well as increased spending on activities that weren't possible at the height of the pandemic. I believe this kind of consumer sentiment incorporating these conflicting elements will strengthen further due to a sense of uncertainty about the future. This dualistic mindset will make customers scrutinize spending even more severely and selectively, and the uniqueness of the products and services we offer will grow in importance. I'd like to mention the impacts of the current environment. Expenses directly related to the bottom line have increased, including raw materials prices and distribution and personnel costs. The most significant has been utilities expense increases. First-half utilities expenses were up by nearly JPY 25.0 billion year-on-year. We managed to control overall SG&A expenses to keep them within targets through energy conservation in stores and back offices and switching to energy-efficient and energy-saving equipment, as well as digitalization of cash register and store operations to increase efficiency. We recognize the need for even stricter cost control in the second half. We'll need to continue with initiatives that produced results in the first-half. We'll also need to create plans to absorb the overall impact of SG&A expenses on business. As for the top line, it's becoming more important than ever to learn and understand how customer needs are changing as they become increasingly diversified. I believe we need to steadily pursue product strategies and sales activities that are responsive to these changes. Now I'd like to introduce examples of initiatives that proved successful in the first-half and others that are currently underway, both in Japan and overseas. Welcia performed strongly in the first-half. As the impact from the pandemic strengthened during the seventh wave of infections, they were quick to detect growing demand for things like testing kits and fever reducers. By securing adequate reserves of such products, they were able to boost sales, and this contributed to operating profit growth. While responding successfully to issues at hand in this way, on September first, Welcia, together with AEON Kyushu, also established through a merger a new company called AEON Welcia Kyushu. The two companies seamlessly integrated Welcia's strengths in drugstore and pharmacy operations and AEON Kyushu's strengths in food products, particularly fresh produce and delicatessen offerings, to create a format incorporating drug and food retail. Incorporating food products into the drugstore business category is now a highly popular move, and competition across business categories is intensifying. When a drug company establishes full-scale food retail infrastructure within a new business domain, however, large investments, including M&A and capital expenditures, are required. Welcia and AEON Kyushu's initiative is the kind of initiative that can only be undertaken by a group like AEON, where assets and know-how are shared between group companies, making it possible to establish new business formats in a short period of time. We hope to make this a successful business model to roll out, beginning with the Kyushu area. Looking overseas now, the impact on the Chinese market of the Zero COVID policy and other factors continues to require close monitoring. In ASEAN countries, the shift among consumers to a post-pandemic mindset has been even faster than in Japan, with a general merchandise store, shopping center development, financial services, and other businesses performing strongly. In addition to its ongoing efforts to differentiate itself by expanding its private branding apparel offerings, AEON Vietnam is also moving to further differentiate itself from the competition by expanding its delicatessen sales areas ahead of rivals. This move is in response to changes in local food demand, particularly increased demand for ready-made meals. AEON Vietnam is steadily expanding its business. Compared with the first-half of pre-pandemic 2019, first-half operating revenue was up 76% and operating profit more than doubled. We will accelerate our current plans to open new multi-format stores, including large-scale shopping centers, general merchandise stores, supermarkets and convenience stores, and we'll take every opportunity to link this to expansion of our business elsewhere in ASEAN's growth markets. As a result of such environmental factors and our own efforts, consolidated group results tracked in line with forecasts with higher revenue and profits although there is disparity among segments' first-half results and outlooks. Operating revenue, operating profit, and ordinary profit all exceeded pre-pandemic levels to reach record highs. Profit attributable to owners of the parent was also up significantly. Most segments achieved operating profit growth. The exceptions were the supermarket, discount store, and financial services businesses, which saw a drop off in pandemic-related demand. With these segments and the segments that are yet to return to 2019 levels, but are recovering from the impact of the pandemic, we'll pursue initiatives focused on bringing customer numbers back up. The general merchandise store business was impacted by higher than initially anticipated electricity costs and a decrease in sales of apparel and household and recreational products as the seventh wave of COVID-19 cases arrived earlier than initially assumed. However, steady progress is being made with earnings structure reform, particularly at AEON Retail. AEON Retail's operating profit improved JPY 11.2 billion in real terms year-on-year when excluding the impact of business transfers and the adoption of the new revenue recognition standards. Factors behind this improvement include SG&A expense reductions, increased operational efficiency through AI utilization, and increased gross profit through inventory control, particularly in the apparel category. Although the seventh wave of COVID-19 infections did have an impact on the top line, it was within the range forecast in our business plan when factoring in the impact of cost control efforts. Our figures tend to rise in the second half, which has the Black Friday, year-end, and New Year's sales periods, and we expect to secure a profit for the full-year. The weighting of retail in the group's total operating profit has reached 41%, up 5% from last year and up 19% compared to pre-pandemic 2019. Factors behind this include the considerable general merchandise store business improvements that I just mentioned, progress in the health and wellness business, a significant domestic growth area, and business expansion in the ASEAN region where markets are seeing rapid overall growth. We've managed to secure record high operating revenue, operating profit, and ordinary profit despite the slow recovery of customer numbers in some segments. I believe we achieve this through making efforts to balance our business portfolio and reform operating profit composition rather than just relying on a handful of segments to generate profits. Changes in consumer sentiment in Japan and abroad due to environmental changes are anticipated in the second half, and these changes are already underway. What's important is how well we anticipate such changes and propose products and services accordingly. As I mentioned earlier, changes to consumer sentiment are making customers more selective and demanding. We believe this means that private brand products and products that convey unique AEON values are growing in importance. We intend to pursue product development that balances added value and value for money to provide customers with satisfying products and shopping experiences. That's all from me. Now, Mitsuko Tsuchiya, Executive Officer in charge of Merchandising, will brief you on our efforts to curb price rises while also introducing some of our high value-added products and new products developed in response to the polarization of consumption. Hello, I'm Mitsuko Tsuchiya, Executive Officer in charge of Merchandising. TOPVALU products results for the first-half improved year-on-year. With the ongoing increases in the cost of food, daily necessities, electricity, and so on, we feel that it's our mission to protect customers' livelihoods. To support our customers, we put a price freeze on almost all TOPVALU products with the exception of fresh produce and certain other products. We've devised ways to rationally reduce product unit costs and have pursued a variety of initiatives to this end. While working to support customers' livelihoods on the one hand, we've also launched new initiatives in the area of select products. Noteworthy among these products is TOPVALU Premium Draft Beer, launched in March. We paid particular attention to ingredients and production methods to ensure the beer's deliciousness, and it's been very well-received by customers. Sales exceeded 8 million cans in the first 6 months after its launch. We've also launched our Pro no Hitoshina series of TOPVALU brand ready-made Japanese, Chinese, and Italian dishes supervised by first-class chefs. The focus is on ingredients and flavor. The series has won the support of a large number of customers, with 62 million servings sold in the first-half, earning sales of JPY 1.8 billion. As a result of these efforts, the number of customers buying TOPVALU products has increased, including both existing and new TOPVALU purchasers. Customers are switching from national brands to TOPVALU, leading to a significant year-on-year increase in sales. In particular, our TOPVALU Best Price products have seen double-digit sales growth. The number of customers visiting AEON stores in order to purchase TOPVALU products has also increased, and this has contributed greatly to store traffic. On the profit front, the extra customers visiting stores to purchase TOPVALU products also purchased various other products, resulting in a year-on-year increase in profits. Since we expect this trend to continue, we'll keep developing new high-quality, value-for-money TOPVALU products. In the second half, we'll continue meeting customer demand and working to support customers' livelihoods while also offering select products. Although national brand beer prices rose in October, we'll keep Best Price Barreal at JPY 78 per can while increasing the malt content to further enhance the taste. Although many national brand product prices rose in October, we'll devise ways to maintain current prices as much as possible to continue supporting customers' livelihoods. In October, we'll be launching a major new product, Canola Oil Half. The product enables users to stir-fry food with only half the usual amount of oil, making it good for household budgets, health, and the environment. We'll be releasing two new TOPVALU products supervised by first-class chefs, a savory custard with lots of fillings in November, and then a pizza product in December. The savory custard is made with select broth and fillings, and the pizza is made with high-quality cheese and dough, resulting in very tasty products that are sure to satisfy customers. We'll continue to expand this series of chef-supervised TOPVALU products with the release of new and reformulated products tailored to a diverse range of customer preferences. In December, we'll also release seasoned roasted wellness chicken and TOPVALU spring chicken products. This year, in light of how difficult things currently are, we'll be proposing Christmas parties that are economical but also bright and cheerful. We believe customers will remain budget-conscious due to soaring food and electricity prices. It's precisely in times like these that we need to work from the perspective of customers to offer them products with value for money at competitive prices and support their livelihoods. We'll also work on developing products that customers will truly value, such as the Canola Oil Half product I just mentioned, to achieve our goal for 2025 and contribute to group sales and profits. Hello, I'm Hiroaki Egawa, Executive Officer in charge of Finance and Business Management. I'll be providing an overview of our first-half results for fiscal year 2022. The business environment during the first-half was very challenging due to factors such as the seventh wave of COVID-19 infections and soaring procurement and energy costs. We have, however, been able to make a variety of improvements in the course of responding to the pandemic and achieve record profits and solid financial results in the first-half. We believe these results will boost our momentum for the second half. As you can see on this slide, all of our major indicators, from operating revenue to ordinary profit, reached record highs. Profit attributable to owners of parent roughly quadrupled year-on-year to JPY 18.0 billion, a JPY 13.4 billion increase. The impact of applying the new revenue recognition standards is as shown on the right side of the screen. This next slide shows our first-half performance in the four years from pre-pandemic fiscal year 2019 through to the present. This year's results exceeded those of pre-pandemic fiscal year 2019 at all levels. Note that electricity costs in the first-half of fiscal year 2022 increased by about JPY 25.0 billion on a consolidated basis due to an increase of more than 30% in the unit price. Although this JPY 25.0 billion increase exceeded our initial assumptions, we were able to offset it to achieve profit growth. This was achieved through recovery of our top line and our efforts to control overall expenses and including boosting productivity to curb personnel expenses and efficiently managing advertising expenses through the use of digital sales promotions. Profit attributable to owners of parent for the second quarter was slightly lower than the first quarter result. The main reasons for this are clear, however. JPY 4.1 billion in loss on valuation of investment securities and JPY 5.7 billion in impairment loss, of which JPY 5.4 billion is attributable to store-related impairment. We were forced to record a loss on valuation of investment securities as a result of drops in the prices of tech stocks listed in New York and stocks of companies we're working with on overseas e-commerce business, mainly due to market-related factors. We also recorded real estate impairment because of our decision to redevelop and rebuild stores in strategic areas in Tohoku and Kansai and have recorded losses on this in advance. These are all one-time losses. Although profit attributable to owners of parent from the first quarter may suggest an inadequate start, we believe we brought overall costs under control and are now in a position to generate profits. The next slide shows results by segment. In the first-half, the general merchandise store business posted the largest improvement in profitability. Although operating profit was still negative, it was a significant improvement from the previous year. The services and specialty store business, which was strongly impacted by the pandemic, also returned to profitability. The international business, which saw a rapid recovery in earnings, mainly in ASEAN markets, also achieved profit growth. These three businesses, plus the shopping center development and health and wellness businesses, all achieved profit growth. The supermarket and discount store businesses recorded decreased profit, partly due to a drop-off in the year-earlier increase in dine-in demand. The financial services business posted a profit decline of JPY 2.1 billion, but it still slightly exceeded initial forecasts and earned the largest profit of any segment. Looking at the relative performance of the various segments, the financial services business performed slightly better than expected, while the supermarket, services and specialty store, and shopping center development businesses performed slightly below expectations. Other segments are generally tracking close to forecast levels. As a result, consolidated operating profit was in line with our forecast. From the next slide, a brief view on each segment's circumstances. First is the general merchandise store business. The graph on the left side of this slide shows segment profit of the first halves from before the pandemic in fiscal 2019 through to this fiscal year. Even though we booked an operating loss of JPY 3.7 billion in the first-half of this fiscal year, we achieved profit growth of JPY 12.3 billion, a significant improvement from the same period last year. The graph at the top right of this slide shows same-store sales for each product category at AEON Retail, the core company of the GMS business. Sales of apparel were brisk, centering on iC innercasual wear products and travel-related goods. first-half same-store sales in the health and beauty care category grew 2.6% year-on-year. This was due to sales of COVID-19 antigen test kits in the prescription drugs category and sales in the growth categories of pet supplies and beauty products. Sales in the food section were firm, mainly in the growth categories of delicatessen and frozen food. As customers are spending their money in an increasingly cautious manner, efforts aimed at expanding sales of TOPVALU, for which prices remained unchanged, helped keep sales at the year-earlier level. The table on the right of this slide shows the year-on-year difference in gross profit at AEON Retail. The 0.4% improvement overall was driven by inventory reductions in the apparel category and efforts to expand sales of recommended products and high-margin products in the health and beauty care category. Also, in terms of our digitalization initiatives, as a result of reviewing upper limits on orders and taking steps to make backroom operations more efficient, online supermarket sales increased by approximately 1.6x in comparison to the first-half of 2019. This slide shows profitability at AEON Retail. The graph on the left of this slide depicts the change in operating profit from last year. Over the past two years, AEON Retail has managed to improve gross operating profit by JPY 9.5 billion by undertaking structural reforms in the form of inventory reductions, fixed cost cutting, and a switch to variable costs. Despite an increase of JPY 4.2 billion in utility expenses from last year due to rising prices, AEON Retail was able to absorb higher electricity costs by controlling overall selling and administrative expenses. As a result, operating profit improved JPY 11.2 billion from last year. The table to the right shows the outcome of structural reforms. The reduction of inventory and shorter turnover is leading to higher profit margins. The table at the bottom right of the slide shows the details of rising electricity costs. To combat rising electricity prices, AEON Retail stepped up its thorough energy-saving measures and replaced its refrigerators and freezers with new models. Nonetheless, utility costs still increased by JPY 4.2 billion compared to last year. That ends my summary of profitability at AEON Retail. Operating profit was negative due to the impacts of COVID-19 in the first-half, but solid progress is being made on controlling costs. Our forecast for a swing to the black for a full-year operating profit remains intact, especially considering the many upcoming events in the second half, including the year-end and New Year's shopping season. Next, let's look at the supermarket and discount store businesses. Looking at the trend in segment profit on the left of the slide, you can see it has declined compared to fiscal 2020, when special demand for dining in was at its peak, and also in comparison to fiscal 2021. When compared to before the pandemic, it has increased from JPY 0.9 billion- JPY 9.4 billion, which represents an improvement of JPY 8.5 billion. Utility costs in the supermarket and discount store businesses increased by about JPY 10.0 billion in the first-half. The JPY 8.5 billion improvement in segment profit breaks down to a JPY 2.8 billion boost from the consolidation of Fuji and a JPY 5.6 billion profit improvement at existing businesses. Compared to fiscal 2019, sales in this segment have risen 4.0 percentage points, and the expenses ratio has been reduced by 0.6 percentage points on the back of regional management integrations, the rollout of self-checkout registers, and the promotion of digitalization, among other factors. The chart at the top right of the screen plots sales. They remain below year earlier levels in the first-half, with a decrease in customer traffic and the number of items purchased. In the second half, rising prices will likely spur on people's growing focus on maintaining their current living standards. We intend to carry out a review of our sales floors and product mix centering on fresh food, delicatessen, and frozen offerings in an effort to boost customer traffic and the number of items purchased. We will also continue to lower our personnel requirements and streamline operations in order to improve profit. The next slide is the health and wellness business. The graph at the top right shows sales. Looking at the blue line in the middle, you can see that sales in the prescription drugs category have been brisk. As for merchandise, sales of pharmaceuticals like cold medicine, fever reducers, and antigen test kits increased when COVID-19 infections rose after July. Sales of these high-margin products grew, while sales of UV and antiperspirant-related cosmetics also increased due to warmer weather. We are also making steady progress on our growth strategy of increasing the number of drugstores capable of processing prescriptions and opening new stores. Next, the financial services business. As you can see on the left of the screen, segment profit has recovered to be just below that of the pre-pandemic level and the year earlier level. At the top right of the screen, you can see earnings by area for AEON Financial Service. A recovery trend overseas has clearly emerged. Revenue and profit came in higher because promotional measures in major regions were strengthened and transaction volume increased. Also, the balance of operating receivables surpassed the pre-pandemic level and productivity was improved with the use of digital technology. In the domestic market, credit card shopping transaction volume recovered, but cash advances were sluggish. As a result, operating profit in the domestic business declined by JPY 5.0 billion. At the bottom of the screen, you can see transaction volumes and balances of receivables for the overseas business. Transaction volume and balance of receivables for credit cards, installment loans, and personal loans were well above year-earlier levels, which is an obvious sign of a post-pandemic recovery. Next, let's look at the shopping center development business. Segment profit fell short of the pre-pandemic level, but it is steadily recovering. Looking at AEON malls by country, you can see that in Japan, sales were improving because COVID-19 case numbers were falling up until early July. The seventh wave of infections appeared from mid-July onwards, which forced many people to stay at home and negatively affected customer traffic at our malls. COVID-19 infections started dropping in September, so going forward, we expect the consumption behavior of customers to pick up again. Therefore, we intend to employ measures aimed at attracting customers while also taking thorough steps to prevent the spread of infections. We will also look to increase sales by implementing promotional measures in a bid to tap new demand generated by the government's measures for stimulating consumption. Looking overseas, in Vietnam, the government switched to a policy of prioritizing economic growth based on a policy of coexisting with the coronavirus. As a result, in the period April through June, which is the second quarter there, sales were up 56.8% year-on-year and a brisk 47.6% above the pre-pandemic level. Spending has been firm since July, and looking ahead, we expect this trend to continue at around 30% higher than pre-pandemic levels. Sales in Cambodia and Indonesia have yet to return to pre-pandemic levels, but they have recovered to be well above last year's figures. In China, consumption was sluggish because people refrained from going out under the government's strict lockdown rules. However, sales bottomed out in April and are now on a recovery track. Next is the services and specialty store business. This segment recorded an operating profit of JPY 5.9 billion after an operating loss last fiscal year. Sales increased month-by-month as the impact of COVID-19 receded. In particular, there was a sharp recovery in earnings at amusement business operator AEON Fantasy and cinema business operator AEON Entertainment. The increase in customer traffic at these companies is also generating group synergies and contributing to greater customer traffic at AEON Malls and other group companies. Next, let's turn to the international business. Here we chalked up sharp profit growth with segment profit coming to JPY 7.3 billion. Notably, the impact of COVID-19 had dissipated in ASEAN countries and AEON Malaysia and AEON Vietnam posted record high operating profit of JPY 2.5 billion and JPY 1.8 billion respectively. In China, where the impact of the pandemic was severe, profit only grew by JPY 0.4 billion. Earnings actually vary depending on the region. Lastly, our earnings forecasts, which we have left unchanged from the start of the fiscal year. First-half results were more or less in line with our projections. In the second half, we expect inflation to rise even further and consumer sentiment to worsen again. The group will work as one to properly assess such changes in the business environment as we set our sights on achieving our full-year earnings targets. I have two questions. First, it has been a year and a half since you announced your medium-term management plan. There are probably some areas where, from your perspective, you sense that considerable progress is being made and others that are not progressing as expected due in part to the external environment. I would like you to share with us the areas where you are making good progress toward the medium-term plan's goals and what areas you think need to be speeded up a little bit. My second question is somewhat related to the first one. During the presentation, it was said that changes in consumer behavior will accelerate further in the second half and that various businesses have their own pricing strategies. I understand that you must offer both value-added products and value-for-money items, such as your best price products, but what is the weighting of the two, and what kind of promotions will be used to ultimately increase customer numbers? I understand there will be differences from region to region, but what do you think will be needed to stimulate customers' purchasing appetite and increase customer numbers in the second half? I think the recovery of the shopping center development business has been delayed. While this probably is due to the impact from the seventh wave of COVID-19 infections, with people movement now definitely on the rise, what kind of measures to increase the number of customers in the second half are you considering? Thank you for your questions. When we first announced our medium-term management plan, it included five strategies focused on DX, products, health and wellness, Asia, and localization, local communities. We have added a sixth, GX, or green transformation, and are now promoting initiatives in six areas. After a year and a half, I am not at all satisfied with our progress in DX, for example, but our online supermarket business has generated sales of about JPY 70 billion. The AEON Group has stepped up its efforts in the online business domain over the past year and a half. While it still needs to do much more, such as in the cashless payment area, there are areas where its efforts are progressing. Another area where progress is being made is management efficiency achieved through DX, as cashless registers are now quite prevalent in our stores. The checkout areas of some stores are mostly unmanned. Some stores have only one manned checkout lane, with all the others being self-checkout lanes that enable customers to make payments using scan-and-go. Cash register operations at our supermarkets now account for about 25%-30% of total personnel costs, and we will make those operations even more efficient through DX. While we have achieved some tangible results, we are implementing initiatives in the recognition that we are still behind in our DX efforts. Regarding merchandise, we have significantly increased the number of private brand products handled and their sales volume. As Ms. Tsuchiya, Executive Officer, Merchandising, explained, everyone has begun to acknowledge the importance of private brands. Private brands require product developers and sellers to be on the same page, and I think we have made considerable progress in that area. The health and wellness business still has a way to go. The business is currently relying solely on drugstores. However, when thinking about the future, I believe our entire business will need to have a health and wellness perspective, and I want to see us get to the point where we can further advance this business. I believe this will be a key point in our strategy for the next fiscal year. Regional integration is another area where we have made good progress. Fuji has integrated its operations in the Chugoku and Shikoku regions, and our business has been regionally integrated in the Kyushu, Hokkaido, and Tohoku areas. However, these regional entities have yet to establish an online network. It is our hope to implement online merges with offline retailing in these regions, but we are quite behind in this effort. In Asia, our focus on Vietnam is evident in recent figures. While I can't give it a perfect score of 100, I am quite satisfied with the quantitative results. This March, the Vietnam business greatly strengthened its development staff. Now is the time to acquire real estate as a first step in creating a business that will benefit from Vietnam's future growth. We also are pursuing the multi-format development of our business there. From many supermarkets to shopping malls, we want to promote the development similar to what we are doing in Japan. As for our green transformation efforts, they presently have the image of contributing to society, and I think it will be some time before we figure out how to incorporate such efforts into our business plans. That sums up my view on the progress of our medium-term plan. As for your question on how we can attract customers as their consumption behavior changes, I think customers' price sensitivity has increased considerably. For example, customers are shifting from beef to pork and chicken. That shows how sensitive they've become. Special promotion days that we call Appreciation Days also are accounting for a larger share of our sales. Considering this, how we can convey value for money will be key during the second half. While it may be an exaggeration to call something a special event, I think it will be important for us to appeal to customers through a wide range of initiatives. I think that the year-end holiday season will provide an environment that easily shows the differences among stores. Consumer traffic will concentrate in stores that provide customers with the previously mentioned so-called value for money, in which they feel they are getting not just a good price, but also quality merchandise for the price. That's why sales on our special promotion days are increasing. Since the same merchandise can be bought on those days with a 5% discount, the mechanism of, "If I'm going to buy it, I will buy it on that day," is at work. We therefore will conduct mass promotions in ways that are clearly understandable to our customers. Regarding the weak recovery in our shopping center development business, over the past two years, the business was first hampered by government guidance to close stores. Therefore, although stores reopened, efforts to attract large numbers of customers were not advisable, so we were unable to hold customer-attracting events like we used to hold quite often in the past. Once government policy is clarified to some extent and inbound visitors are again welcomed, we will be able to strengthen event activities. Shopping malls must not only sell merchandise, but they must also create elements that people can enjoy. Especially with online shopping becoming more widespread, getting customers to come to a shopping mall will depend on how much we can provide them with enjoyable experiences. That is something we have to get back to in the second half. Since we've been moving cautiously, we must make a greater effort to bring back customers. First, while you must resolutely set prices in the second half, do you also have to clearly convey a sense of value added? Is it your idea that you should not ask customers to come because prices are low, but rather you should be appealing to the value offered by the AEON Group as a whole? The second half of the year in particular has many celebratory occasions, such as Christmas and the New Year holidays. While customers' wallets may be tight, they will still want to enjoy Christmas and New Year's as they have in the past and will look for ways to fulfill that need. We must therefore make a strong effort to provide quality. My first question is about online supermarkets. Consumers' lifestyles have changed, so how do you think this is affecting online supermarkets? Amazon, which has strong online brand power, and Rakuten, which has a strong reward point system, are essentially fencing in brick-and-mortar stores. What are AEON's strengths for dealing with this situation? Next, I think one of AEON's strengths is its ability to improve the TOPVALU supply chain, and I would like to ask about what specific initiatives and areas, such as raw material procurement and logistics that you have implemented and will undertake in the future. Regarding online supermarkets, taking AEON Retail's online supermarkets as an example, they continue to achieve constant growth of 10%-20%. A key element supporting growth is how much capacity you have. When demand increases significantly, customers who find they cannot use the online supermarket will not come back later. How much capacity you have is important and a key point for increasing online supermarket sales. Another point is that AEON's online supermarkets are simply a conversion of the real store channel. Customers who shop at AEON's physical stores generally are shopping under conditions that enable them to understand product quality. If they then shop online, they can buy products without much worry. In a sense, the strengths of our physical stores come into play. Especially for food products, customers can feel secure knowing their products purchased online will have the same taste and freshness as products they previously purchased in a store. However, you can't buy more than what is in stock at the store. This is where the startup of the Ocado warehouse delivery type online supermarket is completely different as it can deliver items that are not sold in stores. Whether it is the size or the products themselves that are different, a wide variety of products can be offered. Our online supermarket strategy is to respond to customer needs by having these two pillars. Regarding your second question about the improvement of the TOPVALU supply chain, while we are doing many different things, how we systematically produce in certain quantities will provide us with a big advantage. Take protein bars, for example. We systematically produce them on a nearly 100% dedicated line. This makes operations easier for the factory and enables us to sharply reduce costs. Also, beginning with label-less natural water, we will promote further cost reductions by removing labels and changing packaging formats. In addition, we will lower costs by increasing the number of manufacturing plants and shortening delivery routes. The disposable body warmers that we plan to launch this winter will be manufactured in bulk during the hot summer low demand season and then sold in the winter. These are examples of the many initiatives we are undertaking. As for raw materials, we have started an initiative whereby we procure the materials and supply them to our manufacturing contractors, and we already are beginning to see results. Going forward, we will further promote this initiative and also promote domestic procurement of raw materials. First of all, I would like to ask about costs. While electricity costs have risen significantly, the increase has been absorbed within overall costs. In the first quarter, the cost structure reforms carried out as part of AEON Retail's structural reforms contributed to improved profit. On a consolidated basis, are there any particular factors that have improved cost controls in comparison with past measures? Is there any room for further increasing cost efficiencies? Considering the scale of AEON's business and the domestic environment, I think significant top-line growth will be difficult, so I wonder if there is much room for cost initiatives. Second, I would like to confirm the numbers. I heard that utilities expenses increased by JPY 25 billion. Is this an actual figure that is unaffected by changes in accounting standards? As for cost controls on a consolidated basis, each group company has experienced difficulties increasing its top line during COVID-19, so the focus has turned to expenses. AEON Retail discloses its own distinct figures, but overall group-wide cost controls have been achieved. Although future reductions in utilities expenses will be difficult due to rising unit prices, we think we can reduce costs by focusing on personnel expenses, including labor savings by reducing cash register personnel. In addition, since inventory reductions have a major impact on profits, we would like to create a virtuous cycle of precise inventory reductions that raise gross profit margins. As for the accounting standard for electricity costs, I would like you to understand that the numbers reflect a real increase in comparison with the old standard. If market prices and foreign exchange rates stabilize and the increase in utilities expenses is reduced, can we consider this a factor that will increase profits from next year onwards? Also, since higher utilities expenses can be offset by other cost controls, would it be accurate to understand that SG&A expenses will not fluctuate? As for the future outlook, it is difficult to say anything because so much depends on foreign exchange rates and oil prices. In the second half, we expect a real increase of about JPY 40 billion compared with last year's result. We want to conduct operations such that SG&A expenses do not fluctuate. Since October, there has been a considerable rush to raise prices of food and other products. How will consumer sentiment change going forward? Actually, food sales at general merchandise stores have been flat, but will they decline in the future? Can you share with us your current view of future trends? Also, how do you see the impact of this rush to raise prices and the macro decline in consumption on future business performance? It is hard to imagine consumer sentiment rising in the current inflationary environment. I think what people buy will change. Weighting in the so-called wallet share probably will shift to groceries and daily necessities. The mindset of consumers will be to do without things they don't really need to buy and to put off replacement purchases they normally would make in the past. This is a situation we must understand. Food products, in particular, are probably one product area where consumers will not want to reduce spending, especially during the year-end holiday period. We need to respond by providing the various products that I mentioned earlier. On the other hand, consumer sentiment regarding purchases of household and recreational merchandise and apparel could decline somewhat. As is our practice during promotional events, we must provide high-quality merchandise, having good value for money that customers will want to buy. Since there will be differences among stores, rather than focusing on a decline in consumer sentiment, we are at a stage where we must focus management on ideas that will get customers into our stores and seize market share even though consumer sentiment is weak. As for the macro environment, conditions in Japan are, as I mentioned earlier. The environment is completely different overseas, where a completely post-COVID mood now prevails and rebounding demand is likely to push sales growth above pre-pandemic levels. We don't want to miss out on this opportunity. As explained in the portfolio, the overseas business has increased its share in our overall operating profits from 25%- 30%. We want to keep it at the level and maintain balance. During the pandemic, shopping center development and amusement business may possibly decline, but sales of food and sundries related products could increase. Once the pandemic subsides, the development business will improve, and there will be a balance between overseas and domestic operations. I think we need to guide the company towards stable growth while maintaining such complementary relationships in a multi-format business. Stable growth is difficult for a solitary business, which is where the merit of a multi-format business comes into play, and we have created such complementary relationships.